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Refinancing needs for Italcementi acquisition further reduced

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World Cement,

HeidelbergCement has successfully issued debt certificates in the amount of €625 million.

Due to high demand, it was possible to significantly increase the issue volume from initially €400 million to €625 million. The newly issued debt certificates, with a maturity date of 20 January 2022, consist of two tranches: one tranche with a floating rate and the other with a fixed rate. The fixed rate tranche yields at 1.85% p.a. and the floating tranche at 1.5% p.a. over 6 months Euribor.

The proceeds will be utilised to pre-fund the upcoming Italcementi acquisition and thereby reduces the volume of the bridge financing from €3.3 billion to €2.7 billion. The refinancing needs in the bond market decline to below €2 billion, correspondingly.

Issuance of the debt certificates was secured with the assistance of Landesbank Baden-Württemberg, Landesbank Hessen-Thüringen, and Raiffeisen Bank International.

As already communicated in the announcement of the Italcementi acquisition, the bridge financing should be refinanced by free cash flow, the sale of production sites and the issuance of bonds. The reduction in the volume of bridge financing thus also reduces the need for refinancing in the bond market by the same amount.

Adapted from press release by Joseph Green

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